Work

Artificial intelligence innovation and stock price crash risk

Year: 2024

Type: article

Abstract: This study examines the association between artificial intelligence innovation (AII) and stock price crash risk (SPCR). AII serves as a governance mechanism that can bolster strength in internal controls, leading to increased financial transparency and thereby reducing the likelihood of future SPCR. The results hold after accounting for possible endogeneity issues Further, we find that monitoring through corporate governance mechanisms, level of following by equity analysts, and the reduced information asymmetry constitute important channels that mediate the association between AII and SPCR. Additionally, the relationship between AII and SPCR varies across corporate life cycle stages and workplace culture.

Source: The Journal of Financial Research

DOI: 10.1111/jfir.12424

Authors: Junru Zhang, Chen Cui, Chen Zheng, Grantley Taylor

Institutions: Edith Cowan University, The University of Western Australia, Curtin University

Language: English

Topic: Auditing, Earnings Management, Governance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: hybrid

Estimated APC paid: $3,300

OpenAlex ID: W4400734816

FWCI: 40.73

Cites: 134

Cited by: 41

Related to: 10